Asked by Darian Clark on Jul 18, 2024
Verified
An indifference curve shows all:
A) possible equilibrium positions on an indifference map.
B) equilibrium combinations of two products that are obtainable with a given money income.
C) combinations of two products yielding the same total utility to a consumer.
D) possible combinations of two products that a consumer can purchase,given her income and the prices of the products.
Indifference Curve
A graph that shows different combinations of two goods or services among which a consumer is indifferent, illustrating preferences and trade-offs.
Total Utility
The total satisfaction received from consuming a certain amount of goods or services.
- Discern and utilize insights about indifference curves and how they correlate with consumer gratification.
Verified Answer
KS
Karanveer SinghJul 18, 2024
Final Answer :
C
Explanation :
An indifference curve represents all the combinations of two products that yield the same level of total utility or satisfaction to a consumer. Therefore, option C is the correct choice. Options A, B, and D do not accurately represent the purpose of an indifference curve.
Learning Objectives
- Discern and utilize insights about indifference curves and how they correlate with consumer gratification.
Related questions
Indifference Curves Are Linear and Budget Lines Are Convex to ...
Indifference Analysis Assumes That Utility Is Numerically Measurable
It Is Possible for a Consumer's Indifference Curves to Intersect
Indifference Curves Are Convex to the Origin Due to Diminishing ...
In Moving Northeasterly from the Origin, We Encounter Indifference Curves ...